Quick answer: There are over 2,679 active down payment assistance programs across the United States as of Q1 2026. Every state has at least one program, and most offer multiple options including grants (free money), forgivable loans, and tax credits. Many programs provide 3 to 5% of the purchase price — enough to cover an FHA or conventional down payment entirely. Search for your state below to find what's available.
The down payment is the single biggest barrier to homeownership. According to the National Association of Realtors, 38% of first-time buyers say saving for a down payment was the most difficult step in the buying process — more than qualifying for a mortgage or finding the right home.
What most buyers don't realize is that billions of dollars in assistance go unclaimed every year. Programs exist in every state, funded by state housing finance agencies, local governments, and nonprofits. Many offer outright grants that never need to be repaid.
Types of down payment assistance
Before searching by state, it helps to understand the four main types of assistance. Each works differently and has different implications for your finances.
Grants
Free money that never has to be repaid. Typically 3 to 5% of the purchase price or a fixed dollar amount. The best form of assistance — no strings attached beyond living in the home as your primary residence.
Forgivable loans
A second mortgage loan that is forgiven (erased) after a set period — typically 3 to 10 years — as long as you stay in the home and don't sell or refinance. Essentially becomes a grant if you stay put.
Deferred-payment loans
A zero-interest or low-interest second mortgage with no monthly payments. Repayment is deferred until you sell the home, refinance, or pay off the primary mortgage. Reduces your upfront cost without adding to monthly expenses.
Mortgage Credit Certificates (MCCs)
A federal tax credit that lets you claim 20 to 40% of your annual mortgage interest as a dollar-for-dollar tax credit each year. Doesn't help with the down payment directly, but reduces your tax bill for the life of the loan.
Down payment assistance programs — all 50 states
Search for your state to find the primary housing finance agency and available programs. Each state's housing finance agency (HFA) is the best starting point — they administer the largest statewide programs and can connect you with additional local options.
| State | Housing finance agency | Key programs | Assistance type | Amount |
|---|---|---|---|---|
| Alabama | Alabama Housing Finance Authority (AHFA) | Step Up DPA Program | Second mortgage | Up to $10,000 |
| Alaska | Alaska Housing Finance Corp (AHFC) | Closing Cost Assistance | Deferred loan | Up to $10,000 |
| Arizona | Arizona Dept. of Housing | Home Plus; Pathway to Purchase | Deferred Grant | Up to 5% / $20,000 |
| Arkansas | ADFA | ADDI; Move-Up DPA | Forgivable Second | Up to $10,000 |
| California | CalHFA | Dream For All; MyHome; ZIP Extra | Deferred Forgivable | Up to 20% / $150,000 |
| Colorado | CHFA | DPA Grant; Second Mortgage | Grant Forgivable | Up to 4% / $25,000 |
| Connecticut | CHFA CT | DAP Loan; Time to Own | Second mortgage | Up to $20,000 |
| Delaware | DSHA | Preferred Plus DPA | Forgivable | 2–5% of loan |
| Florida | Florida Housing Finance Corp | FL Assist; HLP Second Mortgage; Salute Our Soldiers | Deferred Second | Up to $15,000 |
| Georgia | Georgia Dream | Standard DPA; PEN DPA; CHOICE DPA | Second mortgage | Up to $10,000 |
| Hawaii | HHFDC | Hula Mae Program | Second mortgage | Varies by county |
| Idaho | Idaho Housing | Second Mortgage DPA | Second mortgage | Up to 3.5% |
| Illinois | IHDA | Opening Doors; SmartBuy; 1st Home Illinois | Forgivable Grant | Up to $10,000 |
| Indiana | IHCDA | Next Home DPA | Forgivable | Up to 3.5% |
| Iowa | Iowa Finance Authority | FirstHome Plus DPA | Grant | Up to $2,500 |
| Kansas | KHRC | First-Time Homebuyer DPA | Forgivable | Up to 4% |
| Kentucky | KHC | Affordable DPA; Regular DPA | Forgivable Second | Up to $10,000 |
| Louisiana | LHC | Market Rate GNMA DPA | Forgivable | Up to 4% |
| Maine | MaineHousing | Advantage DPA | Grant | Up to $5,000 |
| Maryland | Maryland DHCD | SmartBuy 3.0; 1st Time Advantage | Deferred | Up to $40,000 |
| Massachusetts | MassHousing | DPA Loan Program | Deferred (0% int.) | Up to $30,000 |
| Michigan | MSHDA | MI Home Loan DPA | Second mortgage | Up to $10,000 |
| Minnesota | Minnesota Housing | Start Up DPA; Deferred Payment | Deferred Second | Up to $18,000 |
| Mississippi | MHC | Smart Solution DPA | Grant | Up to 3% |
| Missouri | MHDC | Cash Assistance Loan | Forgivable | Up to 4% |
| Montana | Montana Housing | Bond Advantage DPA | Second mortgage | Up to 5% |
| Nebraska | NIFA | Homebuyer Assistance DPA | Grant | Up to 5% |
| Nevada | Nevada Housing Division | Home Is Possible DPA | Grant Forgivable | Up to 4% |
| New Hampshire | NHHFA | Home Flex Plus DPA | Second mortgage | Up to $10,000 |
| New Jersey | NJHMFA | DPA Program | Forgivable | Up to $15,000 |
| New Mexico | MFA NM | FIRSTDown DPA | Second mortgage | Up to $8,000 |
| New York | SONYMA | Down Payment Assistance Loan | Second mortgage | Up to $15,000 |
| North Carolina | NC Housing Finance | NC Home Advantage DPA | Forgivable | Up to 3% |
| North Dakota | ND Housing Finance | DCA/Start DPA | Deferred | Up to $16,000 |
| Ohio | OHFA | Grants for Grads; DPA Options | Forgivable Grant | Up to 5% |
| Oklahoma | OHFA OK | OHFA DPA; Dream Program | Second mortgage | 3.5–4% |
| Oregon | Oregon Housing | Oregon Bond Loan DPA | Deferred | Up to $15,000 |
| Pennsylvania | PHFA | Keystone Advantage; HOMEstead | Forgivable Second | Up to $12,000 |
| Rhode Island | RIHousing | Extra Assistance DPA | Grant | Up to $17,500 |
| South Carolina | SC Housing | Palmetto Home Advantage DPA | Forgivable | Up to 4% |
| South Dakota | SDHDA | Fixed Rate Plus DPA | Deferred | Up to 5% |
| Tennessee | THDA | Great Choice Plus DPA | Second mortgage | Up to $8,000 |
| Texas | TDHCA | My First Texas Home; DPA Programs | Grant Second | Up to 5% |
| Utah | UHC | FirstHome Loan DPA | Second mortgage | Up to 4% |
| Vermont | VHFA | ASSIST DPA | Deferred | Up to $15,000 |
| Virginia | VHDA | DPA Grant; Plus Second Mortgage | Grant Second | Up to 2.5% |
| Washington | WSHFC | Home Advantage DPA | Second mortgage | Up to 5% |
| West Virginia | WVHDF | Homeownership DPA | Deferred | Up to $10,000 |
| Wisconsin | WHEDA | Easy Close DPA | Second mortgage | Up to 6% |
| Wyoming | WCDA | HFA Preferred DPA | Second mortgage | Up to $15,000 |
Important: This table shows the primary statewide program for each state. Most states have dozens of additional programs at the county and city level. Your state housing finance agency website is the best place to find all available options. Programs change frequently — always verify current availability and requirements directly with the administering agency.
How to apply for down payment assistance
5 steps to getting DPA
Check your state housing finance agency website
Start with your state's HFA (listed in the table above). Most have online tools to check eligibility by income, location, and buyer status. Also check HUD's resource at downpaymentresource.com for local programs.
Complete a homebuyer education course
Nearly all DPA programs require a HUD-approved homebuyer education course. Many are available online and cost $50 to $100. Complete this early — it's often required before you can even apply.
Find an approved lender
DPA programs work through participating lenders, not directly with the housing agency. Your state HFA website will have a list of approved lenders in your area. Not all lenders offer DPA — you must use one that does.
Get pre-approved with DPA included
Tell the lender you want to use DPA from the start. They'll factor the assistance into your pre-approval, showing you the true amount you can afford. Use our mortgage calculator to estimate your payment with reduced down payment.
Apply and close
The DPA application is typically bundled with your mortgage application. The lender handles the coordination. At closing, the assistance funds are applied to your down payment and/or closing costs — you bring less cash to the table.
See how DPA changes your monthly payment
Reduce your down payment in the calculator and see how it affects your monthly cost
Use the mortgage calculatorWho qualifies for down payment assistance?
Eligibility varies by program, but most share common requirements. Here's what to expect.
First-time homebuyer status: Most programs require you to be a first-time buyer. However, the definition is more generous than you might think — in most states, a "first-time buyer" is anyone who hasn't owned a home in the past 3 years. So if you sold a home years ago or previously went through foreclosure, you may still qualify.
Income limits: Most programs cap household income at 80% to 120% of the area median income (AMI). In many metro areas, this means household incomes up to $80,000 to $120,000 can qualify. About 11% of programs have no income limits at all.
Credit score: Requirements range from 580 to 680 depending on the program. FHA-based DPA programs tend to accept lower scores. See our guide on credit scores for buying a house for more detail.
Purchase price limits: Programs set maximum home prices, often aligned with FHA or conforming loan limits in the area. This prevents assistance from being used on luxury properties.
Primary residence: You must live in the home as your primary residence. DPA cannot be used for investment properties, second homes, or vacation homes.
Homebuyer education: Nearly all programs require completing a HUD-approved homebuyer education course. This is a one-time class (often available online) that covers budgeting, the mortgage process, and homeownership responsibilities.
Special programs for specific groups
Beyond general first-time buyer programs, many states offer enhanced assistance for specific populations. Over 200 programs nationwide provide special incentives based on your occupation or background.
Teachers and educators: 71 programs in 34% of states offer enhanced DPA specifically for K-12 teachers, school administrators, and education professionals. Some offer up to $10,000 extra on top of standard assistance.
Veterans and military: Beyond VA loans (which require zero down payment), 54 programs in 26% of states offer additional grants and forgivable loans specifically for veterans and active-duty service members.
First responders and law enforcement: 50 programs support police officers, firefighters, EMTs, and other first responders with enhanced down payment grants.
Healthcare workers: Several states added programs during and after the pandemic offering DPA specifically for nurses, doctors, and other healthcare professionals.
Native American homebuyers: 58 programs (28% of states) support Native American buyers, often with eligibility for tribal land purchases and relaxed requirements.